Overdraft Charges

andsoitis

I recently made some payments into my partners bank account as he had no money, so that he could buy something online. Since then he’s receiving OD charges. 

What I don’t understand is surely if the money I sent hadn’t gone into his account immediately, why would the bank allow him to pay for something online and go over his overdraft? If he was over his overdraft it would’ve been for a matter of minutes, rather than a day.  I know with my bank once I’m out of money I cannot use my card to make a payment of any kind (except when the bank needs to take their charges out!!). 

It almost seems like a grey area that they’re exploiting. This is especially tough to take as we are out of work at the moment due to COVID-19. 

I don’t know where to go from here? Any advice would be much appreciated. 

[Deleted User]

This isn't a grey area or anything else untoward, your partner spent money he didn't have - you should have waited until the money had cleared and was in the account, or you order the item. Many banks have unofficial overdrafts and even waivers if it's sorted immediately.

I would ring them, be polite (don't go all Karen on them) and explain the money went in almost immediately after (assuming it did) and ask them nicely if they would consider refunding the charge as a one off and then don't do it again!

andsoitis

Thanks for getting back to me. I just find it hard to accept that a bank would allow you to spend money that they haven’t cleared. Obviously this was massively naive on my part. 

I know there’s no way I’d be able to do that with my bank. But then when I transfer money into my account it goes in immediately and I assumed (wrongly!) that these days all banks would process transfers the same.  

I will follow your advice and get him to give them a call, even if they could stop the charges from increasing that’d be a massive help. Or we could wind up in a never ending circle of charges on top of charges. Thanks for the advice, very much appreciated. 

[Deleted User]

If he's in that much trouble, ask to speak to the financial hardship team after, they may be able to freeze charges for a period, refund some old charges, that sort of thing.

Faster payments are usually in immediately but you can't rely on it as there can be any number of reasons for delays.

I am not aware if all banks will stop you going into an overdraft (unofficially), they may not even be able to - I wouldn't assume that your bank wouldn't allow the same to happen